S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4123

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 1, 2011
                               ___________

Introduced  by  M. of A. CAMARA, COOK, CRESPO, DenDEKKER, GALEF, GIBSON,
  McDONOUGH, McKEVITT, J. MILLER, MILLMAN, SALADINO, SPANO, ZEBROWSKI --
  Multi-Sponsored by -- M. of  A.  BOYLAND,  BRENNAN,  BURLING,  HEVESI,
  MARKEY,  McENENY,  M. MILLER,  PHEFFER,  ROBINSON, SCARBOROUGH -- read
  once and referred to the Committee on Economic Development

AN ACT to amend  the  general  business  law,  in  relation  to  mail-in
  second-hand precious metals dealers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
12-C to read as follows:
                               ARTICLE 12-C
                      MAIL-IN SECOND-HAND PRECIOUS
                             METALS DEALERS
SECTION 220. DEFINITIONS.
        221. APPLICATION OF ARTICLE.
        222. REGISTRATION, TRANSACTION AND RECORDKEEPING.
        223. TENDERING PAYMENT.
        224. INSPECTION OF RECORDS AND PREMISES.
        225. HOLDING PERIOD.
        226. PENALTIES.
        227. POWERS OF THE DEPARTMENT.
  S 220. DEFINITIONS. AS USED IN THIS ARTICLE:
  1. "DEPARTMENT" MEANS THE DEPARTMENT OF STATE.
  2. "JEWELRY" MEANS A PERSONAL ORNAMENT THAT CONTAINS A PRECIOUS  METAL
AND MAY CONTAIN A GEMSTONE OR GEMSTONES.
  3.  "MAIL-IN  SECOND-HAND  PRECIOUS METALS DEALER" MEANS ANY PERSON OR
ENTITY THAT:
  (A) CONDUCTS BUSINESS WITHIN THIS STATE,  THAT  CONTRACTS  WITH  OTHER
PERSONS  OR ENTITIES TO BUY PRECIOUS METALS OR JEWELRY THROUGH AN INTER-
NET WEBSITE, THE UNITED STATES MAIL OR TELEMARKETING; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01609-01-1
              

A. 4123                             2

  (B) CONDUCTS BUSINESS WITHIN THIS STATE, THAT REGULARLY ENGAGES IN THE
BUSINESS OF PURCHASING JEWELRY OR PRECIOUS  METALS  THROUGH  THE  UNITED
STATES MAIL OR INTERNET BASED TRANSACTIONS.
  4.  "PRECIOUS  METAL"  MEANS  ANY  ITEM CONTAINING ANY GOLD, SILVER OR
PLATINUM, OR ANY COMBINATION THEREOF.
  5. "SELLER" MEANS ANY PERSON OR ENTITY  OFFERING  PRECIOUS  METALS  OR
JEWELRY FOR SALE, WHICH BELONG SOLELY TO SUCH PERSON OR ENTITY AND WHICH
HAS ABSOLUTE AUTHORITY TO SELL SUCH GOODS.
  6.  "TRANSACTION" MEANS ANY EVENT RELATING TO THE SALE AND PURCHASE OF
SECOND-HAND PRECIOUS METALS OR JEWELRY BY A MAIL-IN SECOND-HAND PRECIOUS
METALS DEALER.
  S 221. APPLICATION OF ARTICLE. THIS ARTICLE SHALL NOT APPLY TO:
  1. ANY PERSON OR ENTITY THAT IS AVAILABLE TO THE  PUBLIC  FOR  WALK-IN
SALES; OR
  2.  THE  PURCHASE, CONSIGNMENT OR TRADE OF SECOND-HAND PRECIOUS METALS
OR JEWELRY BETWEEN SECOND-HAND PRECIOUS METALS DEALERS.
  S 222. REGISTRATION, TRANSACTION  AND  RECORDKEEPING.  1.  NO  MAIL-IN
SECOND-HAND  PRECIOUS  METALS DEALER SHALL CONDUCT BUSINESS UNLESS IT IS
REGISTERED WITH THE DEPARTMENT PURSUANT TO THIS ARTICLE.
  2. NO MAIL-IN SECOND-HAND PRECIOUS METALS DEALER SHALL  REMIT  PAYMENT
TO A SELLER UNLESS THE SELLER HAS PROVIDED SUCH DEALER WITH:
  (A)  THE  SELLER'S NAME, ADDRESS, TELEPHONE NUMBER AND ELECTRONIC MAIL
ADDRESS, IF AVAILABLE;
  (B) THE SELLER'S DRIVER'S LICENSE NUMBER AND  ISSUING  STATE,  OR  ANY
OTHER GOVERNMENT ISSUED IDENTIFICATION NUMBER; AND
  (C)  A  SWORN  STATEMENT  MADE BY THE SELLER THAT THE DRIVER'S LICENSE
NUMBER OR OTHER GOVERNMENT ISSUED IDENTIFICATION NUMBER PROVIDED BY  THE
SELLER  IS TRUE AND ACCURATE, AND THAT THE SELLER IS THE TRUE AND LAWFUL
OWNER OF THE GOODS SOLD. SUCH  STATEMENT  SHALL  INCLUDE  THE  FOLLOWING
LANGUAGE:  "I DECLARE UNDER THE PENALTY OF PERJURY THAT THE FOREGOING IS
TRUE AND ACCURATE."
   3. FOR EVERY TRANSACTION, A MAIL-IN SECOND-HAND PRECIOUS METALS DEAL-
ER SHALL RETAIN A RECORD OF THE FOLLOWING:
  (A) A COMPLETE AND ACCURATE DESCRIPTION OF THE SELLER'S GOODS, INCLUD-
ING:
  (I) PRECIOUS METAL TYPE OR, IF JEWELRY, THE TYPE OF JEWELRY, AND
  (II) ANY OTHER UNIQUE IDENTIFYING MARKS, NUMBERS OR LETTERS.
  SUCH DESCRIPTION SHALL BE IN SUCH AN ELECTRONIC  FORMAT  AS  SHALL  BE
DETERMINED BY THE SECRETARY OF STATE; AND
  (B)  THE  DATE  THAT  THE  SELLER'S GOODS WERE RECEIVED BY THE MAIL-IN
SECOND-HAND PRECIOUS METALS DEALER.
  THE INFORMATION REQUIRED BY THIS SUBDIVISION SHALL BE TRANSMITTED TO A
LAW ENFORCEMENT AGENCY HAVING JURISDICTION  IN  THE  MUNICIPALITY  WHERE
SUCH  DEALER IS SITUATE WITHIN TWENTY-FOUR HOURS AFTER ENTERING INTO THE
TRANSACTION.
  4. EVERY MAIL-IN SECOND-HAND PRECIOUS METALS  DEALER  SHALL  MAINTAIN,
FOR NOT LESS THAN TWO YEARS, ALL INFORMATION RECEIVED PURSUANT TO SUBDI-
VISIONS TWO AND THREE OF THIS SECTION IN A FORM THAT IS EASILY RETRIEVA-
BLE UPON THE REQUEST OF ANY LAW ENFORCEMENT AGENCY.
  5.  UPON  REQUEST FROM A LAW ENFORCEMENT AGENCY, A MAIL-IN SECOND-HAND
PRECIOUS METALS DEALER SHALL PROVIDE SUCH AGENCY WITH AN ELECTRONIC COPY
OF ALL INFORMATION ON ANY SELLER THAT SUCH DEALER IS REQUIRED  TO  MAIN-
TAIN PURSUANT TO SUBDIVISIONS TWO AND THREE OF THIS SECTION.
  S  223.  TENDERING  PAYMENT.  EVERY  PAYMENT  BY A MAIL-IN SECOND-HAND
PRECIOUS METALS DEALER RESULTING FROM THE SALE, PURCHASE, CONSIGNMENT OR

A. 4123                             3

TRADE OF PRECIOUS METALS OR JEWELRY SHALL BE MADE TO  THE  SELLER  BY  A
CHECK OR MONEY ORDER.
  S  224.  INSPECTION OF RECORDS AND PREMISES. EVERY MAIL-IN SECOND-HAND
PRECIOUS METALS DEALER SHALL ALLOW A LAW ENFORCEMENT AGENCY  TO  INSPECT
ITS BUSINESS RECORDS, INVENTORY AND BUSINESS PREMISE DURING NORMAL BUSI-
NESS HOURS.
  S  225.  HOLDING PERIOD. NO MAIL-IN SECOND-HAND PRECIOUS METALS DEALER
SHALL SELL, BARTER, EXCHANGE, ALTER, ADULTERATE, USE OR  IN  ANY  MANNER
DISPOSE OF GOODS PURCHASED FROM A SELLER WITHIN TEN CALENDAR DAYS OF THE
DATE OF PAYMENT FOR SUCH GOODS.
  S  226.  PENALTIES.  1.  ANY  PERSON  ACTING  AS A MAIL-IN SECOND-HAND
PRECIOUS METALS DEALER WHO IS NOT REGISTERED AS SUCH WITH THE DEPARTMENT
OR ANY MAIL-IN, SECOND-HAND PRECIOUS METALS DEALER   WHICH VIOLATES  ANY
PROVISION  OF THIS ARTICLE SHALL BE GUILTY OF A CLASS E FELONY AND SHALL
BE PROHIBITED FROM ACTING AS A MAIL-IN SECOND-HAND PRECIOUS METALS DEAL-
ER FOR NOT LESS THAN ONE YEAR.
  2. ANY SELLER WHO KNOWINGLY PROVIDES FALSE INFORMATION  TO  A  MAIL-IN
SECOND-HAND PRECIOUS METALS DEALER AND RECEIVES PAYMENT FROM SUCH DEALER
SHALL BE GUILTY OF A:
  (A)  CLASS E FELONY IF THE PAYMENT RECEIVED IS LESS THAN THREE HUNDRED
DOLLARS; AND
  (B) CLASS D FELONY IF THE PAYMENT RECEIVED IS THREE HUNDRED DOLLARS OR
MORE.
  S 227. POWERS OF THE DEPARTMENT. THE DEPARTMENT SHALL  PROMULGATE  ANY
RULES  AND  REGULATIONS  NECESSARY  TO  IMPLEMENT THE PROVISIONS OF THIS
ARTICLE.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the date on which it shall have become a law; provided that, effec-
tive immediately any actions necessary to implement  the  provisions  of
this  act  on  its  effective  date  are  authorized  and directed to be
completed on or before such date.